Fed Debates Bond-Buying Program

4/10/2013 10:53AM

Federal Reserve officials actively debated at their last meeting about whether to begin winding down an $85 billion-per-month bond-buying program after midyear. Jon Hilsenrath reports. Photo: Getty Images.

This transcript has been automatically generated and may not be 100% accurate.

... I ... well it does not like surprises from the central bank ... that is what we got this morning the Federal Reserve released the minutes ... of its more re setting meeting the rate setting committee FOMC ... the March meeting may be the market meaning minute notes were released at nine a m knocked ... two pm as expected ... I the minister not a big surprise to the timing to talk about a minute about the time to let all these issues ... Jon Hilsenrath joins us from Washington ... I'm John let's start off with the issuer that I mean why did these things come at a nine am ... no no ay ay ay ... yet yet there are people in every year amended a up sometimes so it sounds like what happened ... was a staffer ... what is and currency ... yesterday afternoon a little bit after two o'clock ... Senate committees around which had already been compared ... to a bunch of people up on caught up in Congress and at some trade associations ... thinking that the minutes had been publicly released a two o'clock yesterday ... what's bizarre is that ... apparently based on all the D tells nobody notices ... more than a hundred people got it but nobody known as the early release until this morning when another staffer ... who was on the distribution list ... of all these things when out more than a hundred people ... in this gravel they said that it said it had an ... what a bunch of puzzling as I understand that somebody screwed up what I find puzzling is how nobody would notice that dispense that meant so much to people ... attention to why nobody noticed that I mean even ... up until we started getting wind of this I mean right before we went public with the you can see nobody in the market had any idea was no on Twitter no undies I mean nobody got wind of this kept whining it's another with a look at is that you know Congress is disengaged when it comes to monetary policy ... that made his trade associations are although we can't ... dismiss the possibility that someone that ad is the title information we often ... did something with it with a well find that frankly I don't know if there's anything ... wrong with anybody one engine suddenly publicly ... in the markets because ... the Fed wants to know somebody put out it was in the hands of a lot of people were ... tied for second what was and is I think it was a little bit more hawkish ... than people in unexpectedly got wind of some of this stuff ... but this articulated a stay with the Fed is saying in these minutes is that ... there is still ... with the ... bond buying programs are doing a going dollars month ... at least three media that seems to be a consensus that came at the meeting ... but then after that all bets are off yet there some people who ... wanna start tapering the program down at midyear ... other people think they should go into the third quarter although into twenty fourteen ... where were seeing is the beginnings of a very vigorous debate ... that's not going to take place and get very high I think starting in the June meeting ... about when the Fed starts to ... slowly wind and the status of all this money that's coming out of it in or the headlines caught my eye John was the conversation about the risks that investors are taking ... a rather worrying about that ... I mean you've fallen closer than I do but I am on a recall seeing them actually ... talk about that this kind of a level that new ... wells ... I haven't talked about for awhile Remember Jeremy Stein a Fed governor gave a speech to come lot of attention ... in January Congress to financial stability ... it has been watching this stuff you don't burn Anqi after the financial crisis set off in opposite financial stability ... which creates the FOMC ... every other meeting ... up with what's going on here is that that is starting to get a little concerned about ... you know what it is easy money low interest rate policy is causing some markets are pretty ... so they're looking at more carefully ... the verdict that seems to be coming from the staff is aren't we all watched scary window right now we're not bringing any of our belts it's kind of like ... a yellow flag made but not a red flag ... which means that it's not an impediment at this point that the continuing ... to keep rates low but while these bonds to ... fund some concern that the Federal Reserve as a distribution list as members of Congress and affray Group size ... well no I mean that reaches out to a lot of people ... they are ever congressional liaison office which Greggory is working with staffers in Congress ... I didn't know I think what what ... what what's happening here is that ... Yelp has a currency that that ... probably ... has traditionally sent this thing out ... two ... staffers after the Republican releases ... you know what was maybe a little bit more troubling is that ... it controls that they have on these really important pieces of information are so flimsy that one person cannot let it out ... a day early you know it's it's it's not a question of how ... some kind of ... insidious ... in a relationship I think is more question of whether their controls are to lose on information that is really really important to be on the Markets castle until the inning get a lot